Manu Kumar, founder of micro-VC firm K9 Ventures, discusses his long-term operational commitment to the firm during an interview with 20VC host Harry Stebbings.
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“I think when I got into it with a thirty-year timeline.”
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More from Manu Kumar
Insight
Kumar: Multi-stage seed checks are option value that harms struggling startups
“For a lot of these multi-stage firms, the capital that they put into a company in the early stages is just an option value. And if it's just an option value, then if things don't go well, that company is going to have an incredibly difficult time at raising ca…”
Manu KumarMar 23, 2020▶ 8:1220VC: Multi-Stage Funds Investing At Seed Are Option Value Investing, Why The Biggest Enemy For Venture Firms Is Group Think and How Running Companies Changes Your Investment Mentality with Manu Kumar, Founder @ K9 Ventures
Opinion
Kumar: Multi-stage firms use seed checks as training wheels for new partners
“In a lot of cases, I feel that some of the multi-stage firms coming in and investing at the seed stage is not a function of a calculated strategy, but more of essentially providing a safe playground and training wheels for some of the new folks who are there.”
Manu KumarMar 23, 2020▶ 9:4020VC: Multi-Stage Funds Investing At Seed Are Option Value Investing, Why The Biggest Enemy For Venture Firms Is Group Think and How Running Companies Changes Your Investment Mentality with Manu Kumar, Founder @ K9 Ventures
AssertionPartly supported
Kumar: Coined the term pre-seed around 2013 as seed rounds grew
“I actually kind of coined the pre-seed term at one point in, I think in 2013, 2014 because I saw the seed market kind of evolving where it was becoming a two million to three million dollar round, and I was like, wait, these things are changing, and so there h…”
Manu KumarMay 23, 2016▶ 9:0620VC: K9's Manu Kumar on His Approach To Risk, Valuation & Believing What Other People Don't
Insight
Kumar: Overpricing early rounds harms startups more than extra dilution
“My advice to them is to actually go for a slightly lower valuation, because whatever valuation they take is setting the bar for their next round of financing, and it's also setting the bar for what kind of exit they can have. And so trying to optimize that, I …”
Manu KumarMay 23, 2016▶ 13:2220VC: K9's Manu Kumar on His Approach To Risk, Valuation & Believing What Other People Don't
AssertionSupported
Kumar: Mid-2000s Sand Hill Road VCs avoided tech risk and operational backgrounds
“Most of the funds were trying to do investments that were three to four million dollars. They were not taking technology risk. A lot of the new people on Sand Hill at that time were not coming from a startup or an operating background.”
Manu KumarMay 23, 2016▶ 4:2620VC: K9's Manu Kumar on His Approach To Risk, Valuation & Believing What Other People Don't
Disclosure
Kumar: K9 Ventures refuses to invest using convertible notes
“And I walk away from deals all day long based on price and structure, so I also don't do convertible notes.”
Manu KumarMay 23, 2016▶ 12:0620VC: K9's Manu Kumar on His Approach To Risk, Valuation & Believing What Other People Don't
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